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the Chinese engineers were given a single mandate
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This is not state of affairs in all situations. Western companies are often having their designs manufactured in China. Another situation that is becoming more prevalent is non-Chinese mic companies are have componentry manufactured in China that will QC'd and assembled elsewhere. I have some mics that use the latter paradigm and they do not suck.
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They know perfectly well that they could design high-quality microphones if given the chance.
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"Design" has nothing to do with anything. Anybody with internet access can come up with a high quality microphone design. It's about making it. What you'll make it out of. Are you going to pay people pennies a day to make them? Are you going to use the best materials or what ever's cheapest? Are you going to reject componentry that that doesn't cut it of just slap them together and stuff them into boxes? Are you going to have them manufactured in a country that artificially devalues their currency to gain an unfair trade advantage or one that plays by established monetary rules of international trade?
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those Shanghai factories were quietly turning out some really good stuff.
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Sometimes yes, sometimes no. QC is all over the ballpark. Remember the last dud Neumann/Shure condenser you used?
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Telefunken got caught rebranding
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Ahhh, the "Telefunken" situation. Yeah, well, lots of folks have bought the rights to venerable old names and to use the marques as a way to misrepresent inferior goods. This sort of bad acting is hardly limited to microphone sales.
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It's always nice to hear a real expert echo your own opinions
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Probably the worst thing about the internet: the ease of finding like-minded individuals and not properly sharpening your arguments and examining your position.